ENERGY CONSERVATION POLICY AND PROGRAM IN … · • Monitoring No. 13 /2012 on Electricity Saving ... (APBN) Rp. 4 Milyar (APBN) Rp. 20 Milyar (APBN) Rp. 22 Milyar (APBN) Rp. 18

ENERGY CONSERVATION POLICY

AND PROGRAM IN INDONESIA

Indonesia EBTKE Conference and Exhibition 2012

Jakarta, 18 July 2012

By:

Director for Energy Conservation

Directorate General of New Renewable Energy and Energy Conservation

Ministry of Energy and Mineral Resources



OUTLINE



1• Current Condition



1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

727772

800

859 873 896899

956 9841023(in Million BOE)

NRE

4,46 %

770737

800759

700659

642607555

525

1177

Gas

34,2 %

Oil

56,6 %

Oil

46, 77 %`

Coal

23,91%

Gas

24,29 %

NRE

5,03 %

Coal

4,6 %

Year

GROWTH OF NATIONAL ENERGY SUPPLY

1990 - 2010

National Energy Supply and Utilization System is heavily

depend on fossil fuel (95%)

Inefficient use of energy

Energy Consumption is Increasing 7% per year



Source : RIKEN

FINAL ENERGY DEMAND &

POTENTIAL OF ENERGY CONSERVATION

SectorPotential of Energy

Conservation (%)

Industrial 18

Transportation 35

Hosehold 30

Commercial 25

Total 836 MBOE (2010)

Industry

42%

Transportation

31%Househol

10%

Commercial

4%

Others

13%

Final Energy Demand (2010)

Energy Conservation Potential is High



Exploration

Fossil

Energy

Reserve

Fosil Energy

Resources

Fossil

Energy FuelExploitation

Gas Flaring

Flare Gas

Reduction

(Pencegahan)

Clean Mining

Technology

(Pencegahan)

Production

Clean Fossil

Technology

(Pengurangan)

Flared

GasFugitive

Emission

Power

Transport

Household

Industry

Useful

Energy

Efficient Energy

Technology

(Pengurangan)

Renewable

Energy

Carbon Capture &

Storage (CCS)

(Pengolahan)Storage

CARBON SOURCE

(GREEN HOUSE GASSES)

CARBON MANAGEMENT

GHG

ENERGY AND GHG EMISSION



Sector 2000 2001 2002 2003 2004 2005Trend

(% per year)

Energy 280,9 306,8 327,9 333,9 372,1 369,8 5.7

Industry 42,8 49,8 43,7 46,1 48,0 48,7 2.6

Agriculture 75,4 77,5 77,0 79,8 77,9 80,2 1.1

Waste 157,3 160,8 162,8 164,1 165,8 166,8 1.2

LUCF 649,2 560,5 1,287,5 345,5 617,4 674,8* Fluctuation

Peat Fire1 172,0 194,0 678,0 246,0 440,0 451,0 Fluctuation

Total with LUCF 1,377,7 1,349,4 2,576,9 1,215,4 1,721,2 1,991,4 Fluctuation

Total w/o LUCF 556,5 594,9 611,5 623,971 663,8 665,5 3.2

(Million Ton CO2-eq)PROFILE OF INDONESIA GHG EMISSIONS 2000 - 2005

Sources: Indonesia Second National Communication

0

100

200

300

400

2000 2001 2002 2003 2004 2005

Millio

n T

on

ENERGY & INDUSTRY GHG EMISSION

Energy Industry

370 M Ton

CO2-e



Forestry, Peat Land,

Agriculture

680 million Ton

Energy Sector 30 million Ton

Waste 48 million Ton

Industry and

Transportation

9 million Ton

Through the development of new renewable energy and implementing energy

conservation by all sectors

• President Commitment on G-20 Pittsburgh and

COP15 To reduce the GHG Emission in 2020

• Presidential Regulation No. 61 & 71 Year 2011

26%(767 mln Ton)

41%(26%+15%)

NATIONAL COMMITMENT TO REDUCE GHG EMISSION

Own efforts Own efforts and

international

support



2• EC Policy & Regulation



10

Oil

42%

Coal

34%

Gas

21%

NRE

3%

NRE

Gas

Coal

Oil

21,9%

26,4 %

46,9%

5 %

NRE

Gas

Coal

Oil

2010 2015 2020

PRIMARY

ENERGY CONSERVATION

(15.6%)

EN

ER

GY

DIV

ER

SIF

ICA

TIO

N

BAU

Source: DGNREEC Note: 1 TOE = 7,33 BOE

Presidential

Regulation No.

5/2006VISION 25/25

25 %

32%

23%

20%

2785

Million BOE

1177

MillionBOE

Oil

20%

Coal

33%

Gas

30%

NRE

17%

3200

Million BOE

20%

30%

33%

17%

23% Oil

32%

Coal

20%

Gas

25%

NRE

2419 MBOE

1649 MBOE

20,6%

34.6%

41.7%

3,1%

3298

Million BOE

Oil

47%

Coal

24%

Gas

24%

Hydro

4%

Geother

mal

1%

ENERGY POLICY DIRECTION



Law No. 30/2007 on Energy Article 25: Energy Conservation

Government

Regulation

No. 70/2009 on Energy

Conservation

• Mandatory on EC (Energy Management)

• EE Standard and Label

• Incentive/Disincentive

Presidential

Regulation/

Decree

No. 5/2006 on National Energy

Policy

• National RE and EE Target

• Energy Elasticity < 1 in 2025

Presidential

Instruction

No. 13/2011 on Energy and Water

Saving

• Energy and Water Saving for Government, State-

Owned Enterprises

• Target:

- Electricity 20%

- Fuel 10%

- Water 10%

• Periodic reporting

Ministerial

Regulation

No. 6/2011 on EE Label

for Compact Fluorescent Light

(CFL)

• Implementation of Label for CFL

• Mandatory for CFL manufacturer

• Self Declaration of Conformity (SDOC)

• More star - more efficient

EXISTING POLICY AND REGULATION ON

ENERGY CONCERVATION ...... (1)



Ministerial

Regulation

No. 321 & 323/ MEN/XII/2011 on

Standard of Energy Manager

Competence

Competency of Energy Manager in Industrial and

Commercial Building

No. 12/2012 on Fuel Saving

• The use non-subsidized fuel

• Fuel saving 10%

• Gov. Official and State-owned enterprises Vechicle

- 1 June 2012 (Jabodetabek)

- 1 August 2012 (Jawa – Bali)

• Vehicles used by plantation and mining companies (1

Sept 2012)

• Fuel saving for electricy generation

• Monitoring

No. 13 /2012 on Electricity

Saving

• Electricity saving 20% (Improvement of air system,

lighting, & supporting equipment)

• Government/Reg. Gov Office

• State-owned enterprises

• Street lighting, etc.

• Monitoring

No. 14/2012 on Energy

Management

• Mandatory of Energy Management for large energy

users (> 6,000 TOE)

• The distribution of Autority (Gov, Reg.Gov.)

• Monitoring of Energy Management Implementation

• Incentive/Disincentive

EXISTING POLICY AND REGULATION ON

ENERGY CONCERVATION ...... (2)



LAW NO. 30 / 2007 ON ENERGY

GOVERNMENT REGULATION No.70/2009 ON ENERGY CONSERVATION

ResponsibilityImplementation of

Energy Conservation

Standard and

Labeling

Facilitation,

Incentive and

Disincentive

Direction and

Supervision

1 5432

Facilitation : Energy Conservation

should be

implemented in all

stages of activities :

Energy supply

Energy business

Energy utilization

Conservation of

energy resources

Conduct energy

conservation measures

in all stage of

activities, Utilize energy

efficient

technology, Produce

service and production

output efficiently

Private sector :

Public/Community :

Conduct energy

conservation program

in all activities

Government :

Formulating

policy, enhancing

capacity building, etc

Implementing energy

efficiency standard and

labeling

Direction :

Conduct training,

technical

assistance, energy

efficiency

dissemination, and

facilitating R&D on

energy efficient

technology

Supervision to

industries and

commercial sector

on implementing

energy manager,

program, energy

audit, etc

Incentive

Disincentive

Providing

information

access on energy

efficient

technology

Consultative

services on energy

efficiency

measures

Mandatory of Energy

Management for large

energy users (> 6,000

TOE)

GOVERNMENT REGULATION 70/2009 ON

ENERGY CONSERVATION



3• EC Program



Program Description

1. Creating Policy and

Regulation

Preparing Ministerial Decrees as a follow up of Government Regulation No.

70/2009

Preparing policy on energy efficiency in industrial, household, and transportation

sector.

Preparing policy on energy conservation of energy resources

2. Incentive and Disincensive As a follow up of Government Regulation No. 70/2009 on Energy Conservation

Preparing mechanism of fiscal incentive, incentive for import duty of energy

efficiency appliances, etc.

To assess financing scheme for energy efficiency implementation

To assess criteria for energy efficiency appliances and implementation of energy

conservation which will receive incentive and disincentive

3. Creating Public Awareness Conduct seminar/workshop and public advertisement through printed and

electronics media, and dissemination of brochure on energy efficiency

Conduct National Energy Awards for building and industrial sector and participating

in ASEAN Energy Awards

4. Education and Training Training on energy efficiency and conservation by Centre for Training and

Education – MEMR

Participate in the training on energy conservation in abroad conducted by JICA,

ACE, etc

ENERGY CONSERVATION PROGRAM …(1)



Program Description

5. Partnership Program on Energy

Conservation

Providing free of charge energy audit for buildings an industries

During 2003 - 2011, energy audit already done for 645 industries and

buildings

6. Energy Manager & Auditor Preparing the Certification Institution for Energy Manager and Auditor

7. Labeling Provide information to consumers about energy efficiency level of

electric home appliances, and to encourage manufacturers to increase

their quality of products especially in the field of energy efficiency.

“More Star, more efficient” (Maximum 4 stars).

Energy efficiency label for CFL is a pioneer for electric home

appliances.

Followed by refrigerators, air conditioners, electronic ballast which is

expected to be implemented in 2012.




Program Description

8. International Cooperation Bilateral Indonesia –Denmark (DANIDA)

Cooperation with 3 (three) main outputs :

Energy Efficiency and Conservation Clearing House

(ECCHI) www.energyefficiencyindonesia.info

Energy Efficient : New large building are efficient

Auditor Certification and review of incentive scheme

Bilateral Indonesia-Netherland (NL Agency) :

Energy efficiency improvement in industrial sector through implementation of

Energy Potential Scan (EPS)

Bilateral Indonesia-Japan (JICA) :

Study on tariff mechanism and load management at peak load

Labeling for energy equipment

Funding mechanism for energy efficiency

Methodology and emission factor baseline for energy efficient equipment

International Copper Association (ICA):

Conducting Minimum Energy Performance Standards (MEPS) for Electric

Motor and Air-Conditioning


www.energyefficiencyindonesia.info



1. Appoint energy manager;

2. Create energy conservation programs;

3. Do energy audit periodically;

4. Implement the recomendation from energy audit;

5. Reporting energy conservation program to the Ministry

Mandate large enery users which consume > 6,000 TOE* energy per year to

implement energy management as follow:

ENERGY CONSERVATION IN DEMAND SIDE

(GOVERNMENT REGULATION NO. 70/2009 ARTICLE 12)

*) The number of energy users is not so much, but the total of energy

consumption is 60% of total consumption in industry sector.

6000 TOE is equivalent to 251,400 giga joule (GJ) or 69,780 mega watt hour

(MWh).



YEAR 2003 2004 2006 2007 2009 2010 2011 2012

BUDGET -

(PT. PLN)

-

(PT. PLN)

Rp. 2,4

Milyar

(APBN)

Rp. 25

Milyar

(APBN)

Rp. 4 Milyar

(APBN)

Rp. 20

Milyar

(APBN)

Rp. 22

Milyar

(APBN)

Rp. 18

Milyar

(APBN)

PARTICIPANTS 5 industry

dan 6

building

3 industry

dan 6

building

21 industry

dan 11

building

138

industry

dan 62

building

16 industry

dan 24

building

105

industry

dan 55

building

125

industry

dan 70

building

115

industry

dan 65

building

TOTAL OF

SAVING

POTENTIAL

78,4 GWh

= Rp. 50,8

Milyar

= 70,6 Kilo

Ton CO2

14, 8 GWh

= Rp. 6,9

Milyar =

13,32 Kilo

Ton CO2

40,7 GWh

= Rp. 40,4

Milyar

= 36,6 Kilo

Ton CO2

519 GWh

= Rp. 289

Milyar =

467.1 Kilo

Ton CO2

34 GWh

= Rp. 23,8

Milyar = 30

Kilo Ton

CO2

725 GWh

= Rp. 450

Milyar =

645 Kilo

Ton CO2

TOTAL OF

ENERGY

SAVING

ACHIEVEMENT

34,4 GWh

= Rp. 22,2

Milyar

= 40 Kilo

Ton CO2

14,1 GWh

= Rp. 8,2

Milyar

= 12,7 Kilo

Ton CO2

30,1 GWh

= Rp. 19,9

Milyar

= 27,1 Kilo

Ton CO2

307 GWh =

Rp. 168, 8

Milyar =

276,3 Kilo

Ton CO2

15 GWh

= Rp. 10,7

Milyar =

13,6 Kilo

Ton CO2

175 GWh

= Rp. 110

Milyar =

157 Kilo

Ton CO2

Energy savings are generally obtained from energy saving measures that

recommendation is no cost and low cost (management)

There are opportunities to achieve greater energy savings if recommendations medium

cost and high cost are also implemented

Some of recomendation is not yet implemented because of limited funding

PARTNERSHIP PROGRAM ON ENERGY CONSERVATION RESULT



ENERGY EFFICIENCY LABEL: SNI 04-6958-2003

(Comparative Label)

LOGO

4 stage rating system

EE level

Product model

Registration No.

To Introduce Energy-Saving Rate as a Guide for Consumers

Logo: “More Star, More Efficient”

(PP No. 70/2009 Article 16)



STANDARD & LABELING PLAN IN 2011 - 2015

Year

2011 2012 2013 2014 2015

CFL

Refrigerator and Air Conditioner

Electric Ballast, Fan, and TV

Rice Cooker and Electric Motor

Electric Iron and Washing Machine



4• GHG Mitigation Actions in

Energy Conservation



SECTOR POTENTIAL OF MITIGATION ACTION

Transportation

(Potential 35%)

• Provision of public transport

• Use of energy efficient vehicles

• The use of CNG, Biofuels

• Traffic Management Information system

improvements

• Routine road maintenance, etc.

Industry

(Potential 18%)

• Use of energy efficient appliances

• Increased efficiency in production processes

• Implementation of energy management, etc..

Household

(Potential 30%)

• Use of energy efficient appliances (lighting,

water heaters, air conditioners, refrigerators,

TV, etc.)

• Energy saving behavior

Commercial

(Potential 25%)

• Repair of electrical system

• Repair / modification of the building envelope

• Repair system of the Air

• Lighting system improvements

• Pattern of operation Lift / Elevator

• Implementation of energy management, etc.

MITIGATION ACTION OF GHG EMISSION ON ENERGY DEMAND

Source: Master Plan of Energy Conservation

• Relatively easy to do

• Improve the competitiveness of

industrial products (reducing costs)

• Save on fuel usage

• The most "simple and inexpensive"

plant investment delay, reduce

peak loads, etc.

• The cheapest way to reduce

emissions

save energy = reduced

emissions



NO ACTION PLAN PERIODEMISSION REDUCTION

(Million Ton CO2e)

1Implementation of energy management

mandatory for energy intensive users 2010-2020 10.16

2Implementation of Partnership Program on

Energy Conservation 2010-2020 2.11

3Efficiency improvement for household

appliances 2010-2020 10.02

TOTAL 22.3

RAN GRK IN ENERGY EFFICIENCY(PRESIDENTIAL REGULATION NO. 61/2011)



www.ebtke.esdm.go.id

www.esdm.go.id

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES

www.energyefficiencyindonesia.info

Documents

ENERGY CONSERVATION POLICY AND PROGRAM IN … · • Monitoring No. 13 /2012 on Electricity Saving ... (APBN) Rp. 4 Milyar (APBN) Rp. 20 Milyar (APBN) Rp. 22 Milyar (APBN) Rp. 18